Liquidity
Mechanism that guarantees the functioning of decentralized exchanges, such as Viralata Swap and Pancake Swap.
Last updated
Mechanism that guarantees the functioning of decentralized exchanges, such as Viralata Swap and Pancake Swap.
Last updated
This is the central operating mechanism of a decentralized exchange such as Viralata Swap and Pancake Swap.
When participating in an LP (Liquidity Pool), you will be applying a pair of tokens/coins to enable purchases and sales in a decentralized exchange (such as PancakeSwap, Viralata Swap and others). This mechanic can be called "providing liquidity".
"Provide liquidity" means adding a currency pair so that they can be used to enable the operation of decentralized exchanges.
To understand how decentralized exchanges work and why this step is important for their operation, go to:
Providing liquidity involves choosing a pair (AURO/BUSD, for example) and adding resources in exact proportion to the current price. That is, if the value of a unit of Auro is U$0.05, when providing liquidity you will have to add exactly U$0.05 for every 1 Auro. Don't worry, the website will calculate the exact amount when adding liquidity.
To learn how to provide liquidity in Viralata Swap, check the tutorial:
As with any decentralized exchange, just providing liquidity does not guarantee rewards in AURO. After providing liquidity, it is necessary to apply the liquidity pairs to a farm: